A newspaper headline asserts: "Falling Demand Pushes Down Housing Prices." This headline
A) incorrectly implies that the demand for housing can change, whereas in fact only the quantity of housing demanded can change.
B) incorrectly implies that the price of housing will rise when demand increases.
C) incorrectly implies that more housing will be demanded at higher prices.
D) correctly implies that a decrease in demand will decrease the market clearing price.
Answer: D
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Refer to Scenario 2 . Over a long period of time, in the absence of any restrictions in the market, would you expect the price elasticity of demand for crabs to be more elastic or inelastic? Explain
What will be an ideal response?
The fixed exchange rates of the Bretton Woods system were maintained
A) by central bank interventions in the foreign-exchange market. B) by the requirement that short-term interest rates be equalized in all participating countries. C) by the requirement that long-term interest rates be equalized in all participating countries. D) through the automatic workings of the foreign-exchange market.
Creating policy with the goal of increasing economic growth would be considered:
A. to indirectly help eliminate poverty. B. to indirectly hurt efforts to eliminate poverty. C. to only help if directed toward poor areas. D. None of these is true.
For a normal good, an increase in consumer income will lead toI.a movement down the demand curveII.a rightward shift in the demand curveIII.a reduction in supply
A. I only. B. II only. C. III only. D. both II and III.